• PINS Part 4.6 PINS Part 4.6 Deductions from total of tier 1 and tier 2 capital

    Editorial changes (as from 1 January 2015).

    • PINS 4.6.1 Investments in subsidiaries and associates

      An insurer must deduct investments in subsidiaries and associates from the total of tier 1 capital and tier 2 capital.

      Editorial changes (as from 1 January 2015).

    • PINS 4.6.2 PINS 4.6.2 [Deleted]

      Deleted by QFCRA RM/2011-2 (as from 1st July 2011).

      • PINS 4.6.2 Guidance [Deleted]

        Deleted by QFCRA RM/2011-2 (as from 1st July 2011).

    • PINS 4.6.3 PINS 4.6.3 Connected lending of a capital nature

      An insurer must deduct connected lending of a capital nature from the total of tier 1 capital and tier 2 capital.

      Editorial changes (as from 1 January 2015).

      • PINS 4.6.3 Guidance

        The Regulatory Authority regards connected lending of a capital nature to be any lending to a company in the same group as the insurer for activities which that company would find hard to finance from another source, and is typically on a long term basis. Unless there is a genuine ability for the funds to be repaid within a short time, it is generally considered that the loan is of a capital nature.

        Editorial changes (as from 1 January 2015).

    • PINS 4.6.4 PINS 4.6.4 Inadmissible assets

      For the purposes of the table in PINS Rule 4.2.2, inadmissible assets are:

      (a) tangible fixed assets, including inventories, plant and equipment and vehicles;
      (b) deferred acquisition costs;
      (c) deferred tax assets;
      (d) deficiencies of net assets in subsidiaries;
      (e) [Deleted]
      (f) any investment by a subsidiary of the insurer in the insurer's own shares; and
      (g) holdings of other investments which are not readily realisable investments.
      Amended by QFCRA RM/2013-1 and Editorial changes (as from 1st January 2015).

      • PINS 4.6.4 Guidance

        The above assets have been identified as inadmissible assets because:

        a. a sufficiently objective and verifiable basis of valuation does not exist;
        b. their realisability cannot be relied upon with sufficient confidence;
        c. their nature presents unacceptable custody risks; or
        d. the holding of these may give rise to significant liabilities or onerous duties.
        Derived from QFCRA RM01/2006 (as from 1st October 2006)

    • PINS 4.6.5 Amount in any zakah fund

      A takaful entity must deduct any amount held in any zakah fund from the total of tier 1 capital and tier 2 capital.

      Editorial changes (as from 1 January 2015).